News you may have missed #821 (civil liberties edition)

Bernard SquarciniBy IAN ALLEN | intelNews.org |
►►French domestic spy chief cleared of snooping charges. Back in October of 2011, intelNews reported that Bernard Squarcini, who then headed France’s domestic intelligence agency, the DCRI, had been charged with spying on a journalist with the daily Le Monde. The accusation was part of a wider case of domestic snooping, in which Squarcini was believed to have been trying to detect the source of government leaks to the press, allegedly on orders by then-President Nicolas Sarkozy. Earlier this month, however, an appeals court in Paris rejected two of three charges against the former DCRI chief. Squarcini could face up to five years in prison if convicted of the remaining charge.
►►FBI documents termed Occupy movement as ‘terrorism’. A number of heavily redacted US government documents, released following a Freedom of Information Act request, reveal that the FBI organized a nationwide law enforcement investigation and monitoring of the Occupy Wall Street movement beginning in August of 2011. In some documents, the FBI refers to the Occupy Wall Street protests as a “criminal activity” and “domestic terrorism”.
►►Wiretapping by Russian spy agencies doubled in five years. Wiretapping by Russia’s intelligence agencies has nearly doubled over the past five years, according to The Moscow Times. In Western countries, intelligence agencies were given wider powers after the 9/11 terrorist attacks. But in Russia, the exponential growth of wiretapping began after 2007, when terrorism by Islamic-inspired separatists was already on the decline. A federal law passed in 2010 expanded the legal grounds for wiretapping Russian citizens. Now, intelligence officers can wiretap someone’s phones or monitor their Internet activity simply because they allegedly received reports that an individual is preparing to commit a crime.

News you may have missed #810 (Petraeus resignation edition)

David PetraeusBy JOSEPH FITSANAKIS | intelNews.org |
►►How did Petraeus’ affair come to light? CIA Director David Petraeus resigned after a probe into whether someone else was using his email. The probe eventually led to the discovery that he was having an extramarital affair, according to The Wall Street Journal, which cites “several people briefed on the matter”. An FBI inquiry into the use of Petraeus’s Gmail account led agents to believe the woman or someone close to her had sought access to his email. An extramarital affair has significant implications for an official in a highly sensitive post, such as that held by Petraeus, because it can open an official to blackmail.
►►Who did Petraeus have an affair with? The woman with whom General David Petraeus was having an affair is Paula Broadwell, a West Point graduate and the author of a recent hagiographic book about him, entitled All In: The Education of General David Petraeus, co-written with Vernon Loeb. Slate‘s Fred Kaplan reports that “it had long been rumored that something was going on between Petraeus and Broadwell. When she was embedded with him in Afghanistan, they went on frequent 5-mile runs together. But Petraeus went on 5-mile runs with many reporters, and few people who knew him took the rumors seriously”.
►►Who is leading the CIA now? With General David Petraeus stepping down as director of the CIA, following reports of an extra-marital affair, the agency’s current deputy director will take over as director on an interim basis. His name is Michael Morell, and he was a senior CIA aide in the White House to President George W. Bush. Morell had served as deputy director since May 2010, after holding a number of senior roles, including director for the agency’s analytical arm, which helps feed intelligence into the President’s Daily Brief. He also worked as an aide to former CIA Director George Tenet.

MI5 official’s diaries reveal tensions between UK, US spy agencies

Guy LiddellBy JOSEPH FITSANAKIS | intelNews.org |
Newly declassified personal diaries belonging to a senior British intelligence official reveal tensions between British and American spy agencies in the years immediately following World War II. The National Archives, an executive agency operating under the United Kingdom’s Secretary of State for Justice, released the diaries on Friday. They belong to Guy Maynard Liddell, a longtime British intelligence operative who rose to the post of Deputy Director General of MI5, Britain’s domestic intelligence agency. Liddell meticulously kept a diary during most of the 1940s and 1950s, in which he detailed both personal information and details of his work at MI5. Two volumes of his diaries (from 1939 to 1945, edited by Nigel West) have already been published. Now a third installment has been declassified by the National Archives, containing Liddell’s diary entries from the late 1940s and 1950s. The diaries project what some intelligence historians describe as “a certain friction” between postwar British and American intelligence services. Even though the two countries were largely viewed as allies in the immediate postwar period, their respective intelligence agencies did not always see eye to eye. In one instance, Liddell describes his American colleagues as “utterly incapable […] of seeing anybody’s point of view except their own” and accuses them of being “quite ready to cut off their noses to spite their faces”. He also comes across as skeptical of the then-newly established Central Intelligence Agency, which, he writes, “someday” may be able to produce information that would be “worth disseminating, evaluating, or coordinating”. In 1947, shortly after the CIA’s founding, Liddell wrote with a degree of uncertainty that “in the course of time, [the Agency] may produce something of value”. Further on he relayed the opinion of CIA Deputy Director Edwin Kennedy Wright, who apparently told British intelligence officials that in American intelligence organizations “500 people were employed to do what 50 people would do” in the UK. Read more of this post

Moscow denies knowledge of alleged Russian spy ring busted in Texas

Alexander FishenkoBy JOSEPH FITSANAKIS | intelNews.org |
Government officials in Moscow have denied knowledge of an alleged Russian spy ring, which is accused by United States authorities of procuring sensitive microelectronics technology on behalf of the Russian military. Early on Wednesday morning, the Federal Bureau of Investigation conducted pre-dawn raids at several locations in Houston, Texas, and arrested eight members of the alleged spy ring. Four of the arrestees are allegedly Russian citizens, while the remaining five are from Kazakhstan, Azerbaijan and Ukraine. Four are naturalized American citizens. They include Alexander Fishenko, chief executive officer of Apex System LLC, which is accused by the FBI of having exported over $50 million in dual-use microelectronic devices to Russia since 2008. US federal prosecutors allege that three more spy-ring members are currently in Moscow; they include Yuri Savin, Director of Marketing at a company called Artrilor, which is said to have been at the receiving end of Apex System’s export operations. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. The FBI says it has in its possession extensive audio intercepts of the suspects communicating with Russian intelligence, as well as conferring among them about how to hide incriminating documents from US federal authorities. But Sergei Ryabkov, Russia’s Deputy Minister of Foreign Affairs, told Russian reporters on Thursday that the charges against the 11 individuals were “of a criminal nature” and had “nothing to do with intelligence activity”. Read more of this post

FBI raids alleged Russian front-company, indicts 11 on spy charges

Russian Ministry of DefenseBy JOSEPH FITSANAKIS | intelNews.org |
The United States has indicted employees of an alleged Russian front-company in Texas, accused of procuring sensitive microelectronics technology for use by Russian military and intelligence agencies. Public prosecutors in New York said yesterday that the Federal Bureau of Investigation conducted raids in locations around Houston, Texas, which included the headquarters of Arc Electronics, Inc. The export firm is accused of having shipped over $50 million-worth of military-grade microelectronics since 2008. The supplies were received in Moscow, Russia, by a mysterious procurement company called Apex System LLC. Counterintelligence investigators in the US claim both firms are part of an elaborate scheme set up by Russian military intelligence, aimed at stealing dual-use electronics hardware created by American firms. According to the indictment, Arc Electronics told its US suppliers that the microelectronics technologies were intended for use in various types of streetlights. But in reality, said the FBI, the company gave the hi-tech supplies to the Russian Ministry of Defense for use in airborne surveillance systems, as well as in remote weapons guidance systems, among other military applications. Federal prosecutors said that, for over four years, Arc Electronics engaged in a prolonged “surreptitious and systematic” scheme to circumvent US government export controls, thus seriously damaging US national security. Following the early-morning raids, the FBI unsealed indictments against 11 Arc Electronics employees, most of whom were charged with “acting as unregistered agents of the Russian Federation in the United States” —legal jargon for espionage. Read more of this post

News you may have missed #786

Richard Masato AokiBy IAN ALLEN | intelNews.org |
►►US Pentagon wants to share intel with Egypt. The US Department of Defense is offering Egypt a package of classified intelligence-sharing capabilities designed to help it identify military threats along its border with Israel. According to an unnamed senior US official, the Pentagon leadership is concerned about “rising militancy” along the Egyptian-Israeli border. The purported intelligence package includes satellite imagery, data collected through unmanned drones, as well as intercepts of cell phone and other communications among militants suspected of planning attacks. The Egyptian intelligence chief was summarily fired earlier this month, after more than a dozen Egyptian soldiers were killed near Israel’s border when gunmen attacked a post and tried to enter Israel.
►►Researcher disputes Aoki was FBI informant. Last week author Seth Rosenfeld alleged that prominent 1960s Black Panther Party member Richard Masato Aoki, who gave the Black Panthers some of their first firearms and weapons training, was an undercover FBI informer. But the claim, which is detailed in Rosenfeld’s new book, Subversives, is disputed by another researcher, Diane C. Fujino. A professor and chair of Asian American studies at UC Santa Barbara, and author of the recently published Samurai Among Panthers, Fujino argues that Rosenfeld has not met the burden of proof on Aoki, and that he “made definitive conclusions based on inconclusive evidence”.
►►Russian intelligence to monitor blogosphere. Russia’s Foreign Intelligence Service, the FSB, says it plans to fund a program that monitors the Internet’s “blogosphere”, with an aim to “shape public views through social networking”. Citing unnamed sources from inside the FSB, Russian newspaper Kommersant said that the project’s research stage will cost around $1 million. The article implies that the online surveillance and opinion-shaping program will target both Russian- and foreign-language online users. This is not the first time that the FSB has displayed interest in online social networking in recent years.

News you may have missed #782 (history edition)

John A. McConeBy IAN ALLEN | intelNews.org |
►►Did US DCI McCone authorize CIA assassinations? By the CIA’s own admission, we do know the Agency was involved in attempts to kill or overthrow several Third World leaders during the Cold War. But the doctrine of plausible deniability meant there is no paper trail identifying those who ordered such operations. Evidence is reasonably clear that Allen W. Dulles, who served as Director of Central Intelligence (DCI) for nearly nine years, sanctioned them. But what about John A. McCone (pictured), whom Kennedy appointed as DCI in 1961? Is it possible that the CIA carried out assassination plots without his approval or even in the face of his disapproval? Newly discovered notes from a cryptic telephone call McCone made to Secretary of State Dean Rusk on August 21, 1962, support the claim that, while McCone opposed any open discussion of assassination proposals, he did not oppose the efforts as a matter of principle.
►►Ronald Reagan was FBI informant (Note: this is not new information, but it helps to refresh one’s memory from time to time). In the early stages of the Cold War, FBI Director J. Edgar Hoover feared a ‘Kremlin-controlled conspiracy’ to infiltrate Hollywood and use the world’s largest producer of motion pictures to manipulate public opinion against America. In 1945, Ronald Reagan, then an actor, passed along some political gossip of special interest to Hoover. Eventually, Reagan served as an informer in the Bureau’s investigation of alleged communist infiltration of the radio and television industry. He was listed as “Confidential Informant T-36”. Agents described him as “reliable”.
►►Senior Black Panther member was FBI informant. Prominent 1960s Black Panther Party member Richard Masato Aoki, who gave the Black Panthers some of their first firearms and weapons training, was an undercover FBI informer in California, a former agent and FBI report reveal. Aoki’s role inside the Black Panthers was discovered by Seth Rosenfeld while researching his book Subversives: The FBI’s War on Student Radicals, and Reagan’s Rise to Power, which was published today by Farrar, Straus and Giroux. Aoki’s life in the Black Panthers was documented in a 2009 film, Aoki and a 2012 biography titled Samurai Among Panthers. Neither mentioned his work with the FBI. Rosenfeld said Aoki had contended in a 2007 interview it wasn’t true he was an informant, but added: “people change. It is complex. Layer upon layer”.

Blackwater/Academi settles weapons-smuggling charges

Blackwater/Academi headquartersBy JOSEPH FITSANAKIS | intelNews.org |
In the eyes of many, the United States-based security firm formerly known as Blackwater is synonymous with ‘scandal’. Founded in 1997 by self-confessed CIA agent Erik Prince, the company was awarded hundreds of millions of dollars in non-competitive contract bids by the Bush administration, to provide wide-ranging security services in Iraq. But the company’s ‘shoot-first-ask-questions-later’ attitude resulted in numerous bloody incidents in the country, including the 2007 Nisur Square massacre, in which at least 14 Iraqi civilians were killed by trigger-happy Blackwater guards. In 2009, a frustrated US Department of State refused to renew the company’s governmental contracts, after which Blackwater terminated its partnership with the US government (or did it?). What is perhaps less known about the company, now renamed to Academi LLC, is that it has for years been the subject of several investigations by US authorities for a host of criminal offences, ranging from selling secret plans to foreign governments to illicit weapons trafficking. According to court documents unsealed yesterday at the United States District Court in New Bern, North Carolina, Academi has agreed to pay $7.5 million to settle some of these charges. Under the agreement, the company has owned up to 17 different criminal violations with which it was charged after a five-year multi-agency federal investigation led by the Department of Justice. The charges include possessing unregistered fully automatic weapons in the US, illegally exporting encrypted satellite-telephone hardware to Sudan, training foreign nationals without a license, giving classified documents to foreign governments, as well as selling weapons to the Kingdom of Jordan without US government authorization and then lying about it to US federal firearms officials. Read more of this post

US-based Russian illegals ‘groomed children to be spies’

Yelena Vavilova and Andrey BezrukovBy JOSEPH FITSANAKIS | intelNews.org |
A group of Russian non-official-cover operatives, who were arrested in the United States by the Federal Bureau of Investigation in 2010, were grooming some of their children to become spies, according to insider accounts. Nearly a dozen covert members of the Russian Foreign Intelligence Service (SVR), one of the successor agencies of the Cold-War-era KGB, were detained on June 26, 2010, in a series of coordinated raids by the FBI, which marked the culmination of a lengthy counterintelligence operation against the deep-cover operatives. None of those arrested were associated with the diplomatic representation of the Russian Federation in the US; eight were married couples and all were using fake identities. But media coverage of the case, which centered overwhelmingly on the glamorous looks of one of the arrestees, Anna Chapman, paid little attention to the seven children belonging to the captured Russian operatives, whose ages ranged from 1 to 20 years at the time of their parents’ arrests. In an article published late last week, The Wall Street Journal reported that some of the SVR operatives were actively grooming their children to follow in their footsteps as unregistered agents of the Russian government in the US. The paper based its claims on discussions “with current and former US officials”, who allegedly had access to surveillance data from the FBI’s investigation against the Russians. According to the unnamed officials, the SVR operatives had secured the cooperation of at least one of the children, Tim Foley, whose parents operated in the US for over a decade under the assumed names of Donald Heathfield and Tracey Foley. The couple (real names: Andrey Bezrukov, Elena or Yelena Vavilova) had allegedly revealed their secret mission to their son “well before their arrest” in 2010, and had indicated that “they wanted him to follow in their footsteps”. According to the FBI surveillance records, says The Journal, Tim had agreed and offered to travel to Russia “to begin formal espionage training”. He eventually traveled to the land of his birth at least once following the alleged arrangement with his parents. Read more of this post

News you may have missed #771

Shawn HenryBy IAN ALLEN | intelNews.org |
►►Analysis: Ex FBI official says foreign spies biggest online threat. Former FBI executive assistant director Shawn Henry has warned that the biggest threat online comes not from terrorists or hackers, but from foreign intelligence organizations looking to steal intellectual property. “The threat from computer attack is the most significant threat we face as a society, other than a weapon of mass destruction”, he said in his opening keynote at the Black Hat 2012 conference in Las Vegas. “Everything we do —R&D, intellectual property, and corporate strategies— is stored or transmitted electronically. The DNA of companies is available to bad guys”.
►►Taiwanese officials jailed for espionage. Two Taiwanese former officials have been sent to prison by the Taiwan High Court for leaking state secrets to China. Presidential Office official Wang Ren-bing was jailed for two years after being found guilty of passing confidential information about President Ma Ying-jeou’s May 2008 inauguration to Chinese intelligence operatives. Chen Pin-jen, a former aide of Chinese Nationalist Party (KMT) Legislator Liao Kuo-tung, was sentenced to eight months in prison for delivering the confidential information Wang gave him to China. The two were arrested in 2009.
►►Germany charges suspected Syrian spy. A spokeswoman for federal prosecutors in Germany said Sunday that they have filed charges against suspected Syrian spy Akram O., one of two men arrested on suspicion of having spied on Syrian opposition activists in Germany for several years. The two were arrested in February during a sting operation involving over 70 German counterintelligence operatives, who searched the suspects’ apartments. The spokeswoman said she could not give further details before an official confirmation is issued that the suspect and the defense team have received the indictment.

News you may have missed #750 (US edition)

NROL-38 reconnaissance spacecraftBy TIMOTHY W. COLEMAN | intelNews.org |
►►US spy agency launches new satellite. The US National Reconnaissance Office, the agency tasked with overseeing America’s intelligence satellites, successfully placed a new spy satellite into orbit. The Christian Science Monitor reports that the NROL-38 reconnaissance spacecraft was launched from Cape Canaveral Air Force Station in Florida. The satellite launch, sitting atop an Atlas 5 rocket, was streamed live via Webcast for several minutes before being terminated due to national security restrictions and the classified nature of the mission. Particulars regarding the capabilities or specific purpose of the spy satellite were not provided. However, just a few days before, the US Air Force’s highly classified space plane known as the  AX-37B returned to Vandenberg Air Force Base in California.
►►FBI takes on larger domestic intelligence role. The US Federal Bureau of Investigation, under a newly devised action plan, will be afforded a greater role in domestic intelligence efforts in the US, according to a recent Washington Post article.  Senior level field agents at the bureau are expected to serve as representatives for the Office of the Director of National Intelligence (ODNI), the agency created after 9/11 to oversee activities of all US intelligence efforts. The Post quotes CIA spokeswoman Jennifer Youngblood, who —remarkably, considering CIA/ODNI relations in recent years— said that the agency has not opposed the ODNI’s move to elevate FBI agents in the US, and that “the program is working well”.
►►CIA declassifies 9/11 documents. The CIA released this past week hundreds of pages of declassified documents related to the September 11, 2001, attacks, which detail the agency’s budgetary woes leading up to the deadly strikes and its attempts to track al-Qaeda leader Osama bin Laden. The National Security Archive at George Washington University says it obtained the documents through a Freedom of Information Act request. The documents are heavily redacted and offer little new information about what the US knew about the al-Qaeda plot before 2001.

Interview with agent who caught US-Israeli spy Jonathan Pollard

Jonathan PollardBy JOSEPH FITSANAKIS | intelNews.org |
Twenty-six years ago this month, a United States court convicted Jonathan Jay Pollard, a US Navy analyst who had been caught spying on his country for Israel. Pollard, who is still serving his life sentence, enjoys tremendous popularity in Israel as well as among pro-Israeli public figures in the US. His supporters in Israel and elsewhere view him as a hero who is serving an unfairly harsh sentence and they pressure the US government to release him. In light of that, it is worth paying attention to a recent radio interview with the man who caught him spying on America. The interview was conducted by Mike Lanchin, a reporter and producer for BBC radio’s Witness program. Lanchin managed to trace Ron Olive, a retired Assistant Special Agent at US Navy Counterintelligence, who in June 1986 cracked the Pollard case, leading to the spy’s arrest and eventual conviction. Olive, who now runs his own security consultancy firm in Arizona, told Witness that it took him and his fellow investigators over six months to piece together their case against Pollard. He added that, according to his investigation, “Pollard stole so many documents, so highly classified, more so than any other spy in the history of this country, in such a short period of time”. The case, said Olive, was the worst he had ever seen and it “devastated the entire [US] Intelligence Community”. The reason was not only the volume of stolen classified material, but also the fact that Pollard “could have been stopped from the very beginning”. Read more of this post

News you may have missed #739

The US Department of DefenseBy IAN ALLEN | intelNews.org |
►►US Supreme Court to consider case on secret wiretapping. The Supreme Court has agreed to consider blocking a constitutional challenge to the government’s secret wiretapping of international phone calls and emails. At issue is whether Americans who have regular dealings with overseas clients and co-workers can sue to challenge the sweep of this surveillance if they have a “reasonable fear” their calls will be monitored. The case, to be heard in the fall, will put a spotlight on a secret surveillance program that won congressional approval in the last year of President George W. Bush’s presidency.
►►Analysis: Why is CIA applauding DoD’s intel grab? Last month, Director of National Intelligence James Clapper and Secretary of Defense Leon Panetta announced the creation of a new US espionage agency: the Defense Clandestine Service, or DCS. The new agency is expected to expand the Pentagon’s espionage personnel by several hundred over the next few years, while reportedly leaving budgets largely unchanged. The news nonetheless surprised some observers in Washington because the move appeared, at least initially, to be a direct challenge to the Central Intelligence Agency, whose National Clandestine Service leads the country’s spy work overseas. Then came a second surprise: former CIA officers and other intelligence experts started applauding. The question is why.
►►FBI forms secretive online surveillance unit. On May 22, CNet’s Declan McCullagh revealed that the FBI had quietly formed a new Domestic Communications Assistance Center (DCAC), tasked with developing new electronic surveillance technologies, including intercepting Internet, wireless, and VoIP communications. According to McCullagh, DCAC’s goal is “to invent technology that will […] more readily eavesdrop on Internet and wireless communications”. Read more of this post

News you may have missed #731 (Henry Crumpton edition)

Henry 'Hank' CrumptonBy IAN ALLEN | intelNews.org |
►►Ex-CIA officer says more spies in US than ever before. Henry “Hank” Crumpton, who served as Deputy Director of the CIA’s Counter-Terrorism Center, and led the US intelligence response to 9/11, spoke to CBS’ 60 Minutes about his life as a spy. He told the program that “I would hazard to guess there are more foreign intelligence officers inside the US working against US interests now than even at the height of the Cold War”. IntelNews regulars may recall the last time Crumpton spoke on 60 Minutes.
►►Introduction to Crumpton’s The Art of Intelligence. The introduction to Hank Crumpton’s The Art of Intelligence, which came out earlier this week, has been republished by MSNBC, by arrangement with the Penguin Press, a member of Penguin Group. There are at least 20 pages of the book available on the MSNBC website.
►►Can the FBI understand intelligence? Editorial by Hank Crumpton for Politico, in which he says that “the FBI is still measuring success based on arrests and criminal convictions –not on the value of intelligence collected and disseminated to its customers”. He makes a ten-point argument to claim that the FBI, unlike the CIA, does “not understand intelligence”.

News you may have missed #707

Gareth WilliamsBy IAN ALLEN | intelNews.org |
►►Russian colonel charged with spying for the US. Russia charged a reserve colonel with espionage on Tuesday, for selling what officials said were classified topographical maps to the United States Department of Defense. The officer, Vladimir Lazar, purchased a disk with over 7,000 topographical images of Russian territory from a collector he met on the Internet in 2008, smuggled it into neighboring Belarus and gave it to a Russian citizen working for the United States, the prosecutor general’s office said in a statement. An investigation found that the materials could be used for planning military operations, including missile strikes. Officials did not disclose when Lazar was arrested or give his current whereabouts.
►►FBI denies Russian spy tried to sexually entice US cabinet official. On April 1, British newspaper The Independent quoted C. Frank Figliuzzi, the assistant FBI director for counterintelligence, saying that the recently discovered Russian illegals spy ring, which included Anna Chapman, was “getting close enough to a sitting US cabinet member that we thought we could no longer allow this to continue”. Now the FBI says that Figliuzzi “was misquoted”, and that “there is no allegation or suggestion in the complaint that Anna Chapman or anyone else associated with this investigation attempted to seduce a US Cabinet official”.
►►London police admits ‘errors’ in MI6 officer’s death investigation. A coroner was given a wrong name for a witness in the case of an MI6 officer Gareth Williams, whose body was found in a bag in a London flat in August of 2010. The Metropolitan Police said “administrative errors” led to the coroner being given three different names for Elizabeth Guthrie. She is expected to be questioned about her contact with the MI6 officer in the months before his death. At a pre-inquest hearing last week coroner Dr Fiona Wilcox said “there has been some confusion” over the identity of the witness.